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Leaseholds

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slimjim | 16:44 Fri 30th Jan 2004 | Home & Garden
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I have a flat that I bought some 15 years ago and that I now wish to sell. Shortly after the original purchase, I lost contact with the freeholders (2 local brothers). They have never contacted me since. Obviously, the original leasehold agreement had clauses about ground rent in but I haven't paid this since losing contact - don't see why I should given that the freeholders haven't done anything. My question is, how difficult will this make the sale of the property now? What can I do to attract a buyer?
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By not paying the ground rent, you have probably put yourself in breach of the lease, which might well put off any prospective purchaser, especially when their solicitor gets involved. You could presumably pay the ground rent arrears now, to clear that particular aspect. However, I note that you say that "the freeholders haven't done anything". Does this mean that the lease also contains clauses about the freeholders carrying out repairs etc, and you paying maintenance charges, which have also been ignored for the past 15 years? If so, this could present quite an obstacle, especially if any prospective purchaser needs a mortgage from a building society. Finally, the lease may contain a clause requiring you to inform the freeholders of any transfer of the lease, so you may have to contact them about this. My advice would be to read the lease carefully, to identify any potential snags; or, if you don't feel up to that, get some legal advice, before putting the flat on the market.
Do you mean you haven't been paying ground rent because the freeholders haven't bothered to maintain the property, or you haven't been able to pay your ground rent (because you have no details for the freeholder?)? Either way, geofbob is right in stating that you have breached the terms of your lease covenants (regardless of whether the landlord has breached their covenants - this is a separate issue and cannot be used to 'offset' that fact that you've breached yours), but if you can prove that you have sought to make payments to the freeholder, this may go some way to satisfying potential purchasers. However, bear in mind that as far as the new owner is concerned, if there are any outstanding rents when the property changes hands, the freeholder can refuse to register their interest in the property until this is paid.
We are all legally bound to seek out someone to whom we owe money and to pay them (they are not obliged to seek us out). You have long since forfeited your lease by not paying the rent, and the landlords or their successors have right of possession, not you. That position can be saved, however if you pay all of the outstanding rent plus costs ("costs" includes interest and both sides legals). The landlords are not constrained by a time limit. Calculate what you owe over the 15 years and multiply by 5 for a realistic budget. Seek out those to whom you owe (and you must try very, very hard indeed to find them) and do the best deal you can. Once paid up and with the future rent regularly paid you will have something to sell. Your statement that the landlords have done nothing is piffle and should be forgotten. If you cannot find the current landlords after very hard and provable endeavours you will have to go to Court for relief from forfeiture of the lease because of non-payment of rent, and the Court Order obtained must be for the unexpired period of your lease and in terms so that anyone taking the property from you is also fully protected. Otherwise you have nothing to sell.

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